U.S. SECURITIES AND EXCHANGE COMMISSIONWashington, D.C. 20549 Form 10-Q |
Mark One
[ X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended December 31, 2013
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from ______ to _______
Commission File No. 333-190728
MARIKA INC.
(Exact name of registrant as specified in its charter)
Nevada (State or Other Jurisdiction of Incorporation or Organization) | 7389 (Primary Standard Industrial Classification Number) | EIN 30-0784346 (IRS Employer Identification Number) |
2360 Corporate Circle, Suite 400
Henderson NV 89074
(702) 425-4332
(Address and telephone number of principal executive offices)
Indicate by checkmark whether the issuer: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [X ] No[ ]
1 | Page
Indicate by check mark whether the registrant is a large accelerated filed, an accelerated filer, a non-accelerated filer, or a smaller reporting company.
Large accelerated filer [ ] Accelerated filer [ ] Non-accelerated filer [ ] Smaller reporting company [X]
Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes [X] No [ ]
Applicable Only to Issuer Involved in Bankruptcy Proceedings During the Preceding Five Years.
N/A
Indicate by checkmark whether the issuer has filed all documents and reports required to be filed by Section 12, 13 and 15(d) of the Securities Exchange Act of 1934 after the distribution of securities under a plan confirmed by a court. Yes[ ] No[ X ]
Applicable Only to Corporate Registrants
Indicate the number of shares outstanding of each of the issuers classes of common stock, as of the most practicable date:
Class | Outstanding as of May 14, 2014 |
Common Stock: $0.001 | 5,000,000 |
PART 1 | FINANCIAL INFORMATION | |
Item 1 | Financial Statements (Unaudited) | 4 |
| Balance Sheets | 4 |
| Statements of Operations | 5 |
| Statements of Cash Flows | 6 |
| Notes to Financial Statements | 7 |
Item 2. | Managements Discussion and Analysis of Financial Condition and Results of Operations | 8 |
Item 3. | Quantitative and Qualitative Disclosures About Market Risk | 10 |
Item 4. | Controls and Procedures | 10 |
PART II. | OTHER INFORMATION | |
Item 1 | Legal Proceedings | 10 |
Item 2. | Unregistered Sales of Equity Securities and Use of Proceeds | 10 |
Item 3 | Defaults Upon Senior Securities | 11 |
Item 4 | Mine safety disclosures | 11 |
Item 5 | Other Information | 11 |
Item 6 | Exhibits | 11 |
| Signatures | 11 |
3 | Page
MARIKA INC.
(A DEVELOPMENT STAGE COMPANY)
BALANCE SHEETS
AS OF DECEMBER 31, 2013
ASSETS | December 31, 2013 (Unaudited) | June 30, 2013 (Audited) |
Current Assets | | |
Cash and cash equivalents | $ 90 | $ 5,200 |
| | |
Total Current Assets | $ 90 | $ 5,200 |
Total Assets | $ 90 | $ 5,200 |
| | |
LIABILITIES AND STOCKHOLDERS EQUITY | | |
Liabilities | | |
Current Liabilities | | |
Accrued expenses | $ 1,250 | $ 0 |
Loan from director | 2,074 | 474 |
| | |
Total Liabilities | 3,324 | 474 |
| | |
Stockholders Equity | | |
Common stock, par value $0.001; 75,000,000 shares authorized, 5,000,000 shares issued and outstanding | 5,000 | 5,000 |
Additional paid in capital | 0 | 0 |
Deficit accumulated during the development stage | (8,234) | (274) |
Total Stockholders Equity/(Deficit) | (3,234) | 4,726 |
| | |
Total Liabilities and Stockholders Equity | $ 90 | $ 5,200 |
See accompanying notes to financial statements.
4 | Page
MARIKA INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF OPERATIONS
(Unaudited)
| Three months ended December 31, 2013 | Six months ended December 31, 2013 | For the period from May 24, 2013 (Inception) to December 31, 2013 |
| | | |
REVENUES | $ 0 | $ 0 | $ 0 |
| | | |
OPERATING EXPENSES | | | |
Operating Expenses | 36 | 48 | 48 |
Professional Fees | 2,162 | 7,912 | 7,912 |
| | | |
TOTAL OPERATING EXPENSES | 2,198 | 7,960 | 7,960 |
| | | |
NET LOSS FROM OPERATIONS | (2,198) | (7,960) | (7,960) |
| | | |
PROVISION FOR INCOME TAXES | 0 | 0 | 0 |
| | | |
NET LOSS | $ (2,198) | $ (7,960) | $ (7,960) |
| | | |
NET LOSS PER SHARE: BASIC AND DILUTED | $ (0.00) | $ (0.00) | $ (0.00) |
| | | |
WEIGHTED AVERAGE NUMBER OF SHARES OUTSTANDING: BASIC AND DILUTED | 5,000,000 | 5,000,000 | 5,000,000 |
See accompanying notes to financial statements.
5 | Page
MARIKA INC.
(A DEVELOPMENT STAGE COMPANY)
STATEMENT OF CASH FLOWS
(Unaudited)
| Three months ended December 31, 2013 | Six months ended December 31, 2013 | For the period from May 24, 2013 (Inception) to December 31, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES | | | |
Net loss for the period | $ (2,198) | $ (7,960) | $ (7,960) |
Adjustments to reconcile net loss to net cash (used in) operating activities: | | | |
Changes in assets and liabilities: | | | |
Increase (decrease) in accrued expenses | 1,250 | 1,250 | 1,250 |
CASH FLOWS USED IN OPERATING ACTIVITIES | (948) | (6,710) | (6,710) |
| | | |
| | | |
CASH FLOWS FROM FINANCING ACTIVITIES | | | |
Proceeds from sale of common stock | - | - | 5,000 |
Loans from director | 1,600 | 1,600 | 1,800 |
CASH FLOWS PROVIDED BY FINANCING ACTIVITIES | 1,600 | 1,600 | 6,800 |
| | | |
NET INCREASE IN CASH | 598 | 5,110 | 90 |
Cash, beginning of period | 688 | 5,200 | 0 |
Cash, end of period | $ 90 | $ 90 | $ 90 |
| | | |
SUPPLEMENTAL CASH FLOW INFORMATION: | | | |
Interest paid | $ 0 | $ 0 | $ 0 |
Income taxes paid | $ 0 | $ 0 | $ 0 |
See accompanying notes to financial statements.
6 | Page
MARIKA INC.
(A DEVELOPMENT STAGE COMPANY)
NOTES TO THE FINANCIAL STATEMENTS
DECEMBER 31, 2013
NOTE 1 ORGANIZATION AND NATURE OF BUSINESS
Marika Inc. was incorporated under the laws of the State of Nevada on May 24, 2013. The Company has no business operations and is considered a development stage company, as defined by Accounting Standards Codification 915.10.05 Accounting and Reporting by Development Stage Enterprises. The company was formed with the intention of providing errand and concierge services to businesses and individuals on an online platform.
NOTE 2 GOING CONCERN
The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. However, the Company had no revenues as of December 31, 2013. The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time.
Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of managements efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern.
NOTE 3 SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES
Development Stage Company
The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from.
Basis of Presentation
The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC) and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company as of and for year ending June 30, 2013 and the three month period ending December 31, 2013.
Cash and Cash Equivalents
The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $90 of cash as of December 31, 2013 and $ 5,200 as of June 30, 2013.
Fair Value of Financial Instruments
The Companys financial instruments consist of cash and cash equivalents and amounts due to shareholder. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements.
7 | Page
Income Taxes
Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted Accounting Standards Codification 740.10.05 Accounting for Income Taxes as of its inception. Pursuant to Accounting Standards Codification 740.10.05, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years.
Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Revenue Recognition
The Company will recognize revenue when products are fully delivered or services have been provided and collection is reasonably assured.
Stock-Based Compensation
Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options.
Basic Income (Loss) Per Share
Basic income (loss) per share is calculated by dividing the Companys net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Companys net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of December 31, 2013.
Comprehensive Income
The Company has which established standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income.
Recent Accounting Pronouncements
Marika Inc. does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Companys results of operations, financial position or cash flow.
NOTE 4 LOANS FROM DIRECTOR
In May 2013, director loaned $274 to incorporate the Company and $200 to open bank account. In December 2013, director loaned $1,600 for business operations. The loan is unsecured, non-interest bearing and due on demand.
8 | Page
The balance due to the director was $2,074 as of December 31, 2013.
NOTE 5 COMMON STOCK
The Company has 75,000,000, $0.001 par value shares of common stock authorized.
On September 28, 2013, the Company issued 5,000,000 shares of common stock for cash proceeds of $5,000 at $0.001 per share.
There were 5,000,000 shares of common stock issued and outstanding as of December 31, 2013.
NOTE 6 COMMITMENTS AND CONTINGENCIES
The Company neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future.
NOTE 7 INCOME TAXES
As of June 30, 2013, the Company had net operating loss carry forwards of approximately $274 that may be available to reduce future years taxable income in varying amounts through 2031. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards.
The provision for Federal income tax consists of the following:
| June 30, 2013 |
Federal income tax benefit attributable to: | |
Current Operations | $ 93 |
Less: valuation allowance | (93) |
Net provision for Federal income taxes | $ 0 |
The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows:
| June 30, 2013 |
Deferred tax asset attributable to: | |
Net operating loss carryover | $ 93 |
Less: valuation allowance | (93) |
Net deferred tax asset | $ 0 |
Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $274 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years.
NOTE 8 SUBSEQUENT EVENTS
9 | Page
In accordance with SFAS 165 (ASC 855-10) management has reviewed events between December 31, 2013 and the date the financial statements were issued, May 2, 2014 and has determined that it does not have any material subsequent events to disclose in these financial statements.
FORWARD LOOKING STATEMENTS
Statements made in this Form 10-Q that are not historical or current facts are "forward-looking statements" made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 (the "Act") and Section 21E of the Securities Exchange Act of 1934. These statements often can be identified by the use of terms such as "may," "will," "expect," "believe," "anticipate," "estimate," "approximate" or "continue," or the negative thereof. We intend that such forward-looking statements be subject to the safe harbors for such statements. We wish to caution readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. Any forward-looking statements represent management's best judgment as to what may occur in the future. However, forward-looking statements are subject to risks, uncertainties and important factors beyond our control that could cause actual results and events to differ materially from historical results of operations and events and those presently anticipated or projected. We disclaim any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statement or to reflect the occurrence of anticipated or unanticipated events.
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATION
EMPLOYEES AND EMPLOYMENT AGREEMENTS
At present, we have no employees other than our officer and director. We presently do not have pension, health, annuity, insurance, stock options, profit sharing or similar benefit plans; however, we may adopt such plans in the future. There are presently no personal benefits available to any officers, directors or employees.
Results of Operation
Our financial statements have been prepared assuming that we will continue as a going concern and, accordingly, do not include adjustments relating to the recoverability and realization of assets and classification of liabilities that might be necessary should we be unable to continue in operation.
We expect we will require additional capital to meet our long term operating requirements. We expect to raise additional capital through, among other things, the sale of equity or debt securities.
Three and Six Months Periods Ended December 31, 2013
Our net loss for the three and six months periods ended December 31, 2013 were $2,162 and $7,960. During the three and six months periods ended December 31, 2013 we did not generate any revenue.
During the three and six months period ended December 31, 2013, our operating expenses were bank fees of $36 and 48, and professional fees of $2,162 and $7,912. The weighted average number of shares outstanding was 5,000,000 for the three and six months period ending December 31, 2013.
10 | Page
Liquidity and Capital Resources
Three Months Period Ended December 31, 2013
As at December 31, 2013, our total assets were $90 compared to $5,200 in total assets at June 30, 2013. Total assets were comprised of cash and cash equivalents only. As at December 31, 2013, our current liabilities were $3,324 compared to $474 at June 30, 2013. Stockholders equity was $ (3,234) as of December 31, 2013 compared to equity of $4,726 as of June 30, 2013.
Cash Flows from Operating Activities
We have not generated positive cash flows from operating activities. For the three months period ended December 31, 2013, net cash flows used in operating activities was $948. For the six months period ended December 31, 2013, net cash flows used in operating activities was $6,710. For the period from inception (May 24, 2013) to December 31, 2013, net cash flows from operating activities was $6,710.
Cash Flows from Investing Activities
For the three and six months period ended December 31, 2013, the Company have not generated any cash flow.
Cash Flows from Financing Activities
We have financed our operations primarily from either advancements or the issuance of equity. For both the three and six months periods ended December 31, 2013, cash flows for financing activities were $1,600. For the period from inception (May 24, 2013) to December 31, 2013, net cash provided by financing activities was $6,800 received from proceeds from issuance of common stock and director loan.
Plan of Operation and Funding
We expect that working capital requirements will continue to be funded through a combination of our existing funds and further issuances of securities. Our working capital requirements are expected to increase in line with the growth of our business.
Existing working capital, further advances and debt instruments, and anticipated cash flow are expected to be adequate to fund our operations over the next three months. We have no lines of credit or other bank financing arrangements. Generally, we have financed operations to date through the proceeds of the private placement of equity and debt instruments. In connection with our business plan, management anticipates additional increases in operating expenses and capital expenditures relating to: (i) acquisition of inventory; (ii) developmental expenses associated with a start-up business; and (iii) marketing expenses. We intend to finance these expenses with further issuances of securities, and debt issuances. Thereafter, we expect we will need to raise additional capital and generate revenues to meet long-term operating requirements. Additional issuances of equity or convertible debt securities will result in dilution to our current shareholders. Further, such securities might have rights, preferences or privileges senior to our common stock. Additional financing may not be available upon acceptable terms, or at all. If adequate funds are not available or are not available on acceptable terms, we may not be able to take advantage of prospective new business endeavors or opportunities, which could significantly and materially restrict our business operations. We will have to raise additional funds in the next twelve months in order to sustain and expand our operations. We currently do not have a specific plan of how we will obtain such funding; however, we anticipate that additional funding will be in the form of equity financing from the sale of our common stock. We have and will continue to seek to obtain short-term loans from our directors, although no future arrangement for additional loans has been made. We do not have any agreements with our directors concerning these loans. We do not have any arrangements in place for any future equity financing.
Off-Balance Sheet Arrangements
11 | Page
As of the date of this Quarterly Report, we do not have any offbalance sheet arrangements that have or are reasonably likely to have a current or future effect on our financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources that are material to investors.
Going Concern
The independent auditors' review report accompanying our December 31, 2013 financial statements contained an explanatory paragraph expressing substantial doubt about our ability to continue as a going concern. The financial statements have been prepared "assuming that we will continue as a going concern," which contemplates that we will realize our assets and satisfy our liabilities and commitments in the ordinary course of business.
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK.
No report required.
ITEM 4. CONTROLS AND PROCEDURES
Our management is responsible for establishing and maintaining a system of disclosure controls and procedures (as defined in Rule 13a-15(e) and 15d-15(e) under the Exchange Act) that is designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the Commissions rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by an issuer in the reports that it files or submits under the Exchange Act is accumulated and communicated to the issuers management, including its principal executive officer or officers and principal financial officer or officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.
An evaluation was conducted under the supervision and with the participation of our management of the effectiveness of the design and operation of our disclosure controls and procedures as of December 31, 2013. Based on that evaluation, our management concluded that our disclosure controls and procedures were not effective as of such date to ensure that information required to be disclosed in the reports that we file or submit under the Exchange Act, is recorded, processed, summarized and reported within the time periods specified in SEC rules and forms. Such officer also confirmed that there was no change in our internal control over financial reporting during the three-month period ended December 31, 2013 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
PART II. OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
Management is not aware of any legal proceedings contemplated by any governmental authority or any other party involving us or our properties. As of the date of this Quarterly Report, no director, officer or affiliate is (i) a party adverse to us in any legal proceeding, or (ii) has an adverse interest to us in any legal proceedings. Management is not aware of any other legal proceedings pending or that have been threatened against us or our properties.
ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
No report required.
12 | Page
ITEM 3. DEFAULTS UPON SENIOR SECURITIES
No report required.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
ITEM 5. OTHER INFORMATION
No report required.
ITEM 6. EXHIBITS
Exhibits:
31.1 Certification of Chief Executive Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
31.2 Certification of Chief Financial Officer pursuant to Securities Exchange Act of 1934 Rule 13a-14(a) or 15d-14(a).
32.1 Certifications pursuant to Securities Exchange Act of 1934 Rule 13a-14(b) or 15d-14(b) and 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes- Oxley Act of 2002.
SIGNATURES
In accordance with the requirements of the Exchange Act, the registrant caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Marika Inc. |
Dated: May 14, 2014 | By: /s/ Aleksandrs Sviks |
| Aleksandrs Sviks, President and Chief Executive Officer and Chief Financial Officer |
13 | Page
302 CERTIFICATION
I, Aleksandrs Sviks, certify that:
1. I have reviewed this quarterly report on Form 10-Q of Marika Inc.;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. I am responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures, to be designed under my supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to me by others within those entities, particularly during the period in which this report is being prepared;
b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under my supervision, to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report my conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
d. Disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. I have disclosed, based on my most recent evaluation of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
Date: May 14, 2014
/s/Aleksandrs Sviks
Aleksandrs Sviks
Chief Executive Officer
Chief Financial Officer
CERTIFICATION PURSUANT TO
18 U.S.C. SECTION 1350
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
The undersigned officer of Marika Inc. (the "Company"), hereby certifies, to such officer's knowledge, that the Company's Quarterly Report on Form 10-Q for the quarter ended December 31, 2013 (the "Report") fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
/s/Aleksandrs Sviks
Aleksandrs Sviks
Chief Executive Officer
Chief Financial Officer
May 14, 2014
"P[&;+786
MS*$N3!ZP7^/EY1V3O6G`D5NO]#6F=MWKA\5++=BR'BL.X=Z__;KKSS?G];$?
MT-7]=I<:ZP.'`/=3"FB^8[%?E&WQ&F\=4]\^!69>3NWB%IDIE;^H=0D6K,L&
M*"%[_O*_^+^M;`D!C>])(.G&NUHP.VZ9I7&V#0UQ&C(JB'@N)K,-K>-]QSJ8
MGC(4-;:+#GAI7= ^I75"12R:`>F:`-#9QMVXVLP%*3?QJ`I)#!TC3,R=4LA4D
M:[D8I.:I8Y]80;/^A'-#*I8VF=RD[6;.4A99,4@E)M![9GPT87,B;+J`4A,?
M'\'3H>.C09L'DYLM4099;,4@)8.%W@&$RS5[R<0'2-8_,4AE9K%WP,K6Z,V)
MJDPR69#$()F8VZ#EE,Z6_3/S_7#FD(E+)G?M&*0R$YA^>TX7`;UIR4BFE#G,
MQ.9T8;#7/<_IB5[?C9"!T)LR9REW;6H'`BL9'"8%<[(!M6P1<,L$"B8^0'+7
MIG9!12Z9P/29`=(T+HC&"728B5_-05/J,&"`7#=B@(*)0T?NVDYQMX'I7;L0
M['4T+`2!=(.SB"QLD.VF#2I*QIT]9)6RW;K"^X
MT\WYGC"VENPL_CZGL?/FS&7GY.)%&CNUL&-K.[;2U.#9DRD*0Y/L(&,<8[Z4
M%3]F\=%]0.?#:8,25-,,&G*H&AAQZ8/(#DMQS-TJV_````__\#`%!+`P04
M``8`"````"$`E_>Z[_X#``!G#P``&````'AL+W=O
Balance sheets (USD $)
|
Dec. 31, 2013
|
Jun. 30, 2013
|
---|---|---|
Assets, Current | ||
Cash and Cash Equivalents, at Carrying Value | $ 90 | $ 5,200 |
Prepaid Expense, Current | 0 | |
Assets | 90 | 5,200 |
Liabilities, Current | ||
Accrued Liabilities, Current | 1,250 | 0 |
Liabilities, Noncurrent | ||
Due to Related Parties, Noncurrent | 2,074 | 474 |
Liabilities | 3,324 | 474 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | ||
Common Stock, value | 5,000 | 5,000 |
Retained Earnings (Accumulated Deficit) | (8,234) | (274) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | (3,234) | 4,726 |
Stockholders' Equity, Number of Shares, Par Value and Other Disclosures | ||
Common Stock, Shares Authorized | 75,000,000 | 75,000,000 |
Common Stock, Shares Issued | 5,000,000 | 5,000,000 |
Common Stock, Shares Outstanding | 5,000,000 | 5,000,000 |
Liabilities and Equity | $ 90 | $ 5,200 |
S"`#3P>(LXB
MVTH&WJ#^%+@GN_[%OR(=RL[X">4LKT>5K!Z]O[UIOF>7M\W+QGUS7S5F(;=0
M(KAC90+7NA,;,11B:\5`%8:"M87P02C$@*/`2Q]E`1<3NV9(@KIF]\\;(T0Q
M0#7DJ=2"-`+<@2<.V:@GG9ZQ@WT4"7.`0/H1CV4OS.@AR"EG784P4/I$X!?M
M$IS`$OQ#C4#Z@\/<*SWNHNH&\1X[)PL`OEE@X955RU;?,W"RFF_[1CUC`SP)
M4T0M4<%G(H(/9,B]0Q)U8R1"TBI/X#`)_!(=8$Q(JB$TMHU)W8-)X$=(!K!)
M1*LH<,@4)43JJ(.-?ZC$\)ZC8%:QS:&I:P!(7X(^P8H*L'`N&U#T02R3?9&=
MT-YKV$(<'[D/=HPL&F3OP)8!96QACX>YE1Y)SP/)!/LZ0(;XX2$:-1KB"QZP
M3A1&>$8.S9#K2I0O$&WI#V%="+I=361Y!YQ&AN,BWL/-B@992)=6%D@E>+CB
MPNO`DAKR9,CZX%2`*.P7Q)$!!T. P2',HHJ?(UC7>$O1J]I'=:A`Z87Y<6)J5Y;Q7K.8
M8^BU!@)80#?\DGV&Y`=),R?Z)?R=\8?BO/SQ>7-$MH<)\XEJ&H$-U761^(%A
M?PKUCL 9V\#.A'?KN0(AH#DR%>P!DS[ADMTXV2M2S@^QD=,;!\B2O
M0#_0^K[8]@XY(OMVR[.V+B_32H9T<=X6/5)]&T9F;_+I'#)3DU2%2%WZ!^ ^(V1PZ9:N#<
MLYC5\;]9:9*8=3 NOTE 1 ORGANIZATION AND NATURE OF BUSINESS Marika Inc. was incorporated under the laws of the State of Nevada on May 24, 2013. The Company has no business operations and is considered a development stage company, as defined by Accounting Standards Codification 915.10.05 Accounting and Reporting by Development Stage Enterprises. The company was formed with the intention of providing errand and concierge services to businesses and individuals on an online platform. NOTE 2 GOING CONCERN The accompanying financial statements have been prepared in conformity with generally accepted accounting principle, which contemplate continuation of the Company as a going concern. However, the Company had no revenues as of December 31, 2013. The Company currently has limited working capital, and has not completed its efforts to establish a stabilized source of revenues sufficient to cover operating costs over an extended period of time. Management anticipates that the Company will be dependent, for the near future, on additional investment capital to fund operating expenses The Company intends to position itself so that it may be able to raise additional funds through the capital markets. In light of managements efforts, there are no assurances that the Company will be successful in this or any of its endeavors or become financially viable and continue as a going concern. NOTE 3 SUMMARY OF SIGNIFCANT ACCOUNTING POLICIES Development Stage Company The accompanying financial statements have been prepared in accordance with generally accepted accounting principles related to development stage companies. A development-stage company is one in which planned principal operations have not commenced or if its operations have commenced, there has been no significant revenues there from. Basis of Presentation The financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America and are presented in US dollars. The accompanying financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America, and pursuant to the rules and regulations of the Securities and Exchange Commission (the SEC) and reflect all adjustments, consisting of normal recurring adjustments, which management believes are necessary to fairly present the financial position, results of operations and cash flows of the Company as of and for year ending June 30, 2013 and the three month period ending December 31, 2013. Cash and Cash Equivalents The Company considers all highly liquid investments with the original maturities of three months or less to be cash equivalents. The Company had $90 of cash as of December 31, 2013 and $ 5,200 as of June 30, 2013. Fair Value of Financial Instruments The Companys financial instruments consist of cash and cash equivalents and amounts due to shareholder. The carrying amount of these financial instruments approximates fair value due either to length of maturity or interest rates that approximate prevailing market rates unless otherwise disclosed in these financial statements. Income Taxes Potential benefits of income tax losses are not recognized in the accounts until realization is more likely than not. The Company has adopted Accounting Standards Codification 740.10.05 Accounting for Income Taxes as of its inception. Pursuant to Accounting Standards Codification 740.10.05, the Company is required to compute tax asset benefits for net operating losses carried forward. Potential benefits of net operating losses have not been recognized in these financial statements because the Company cannot be assured it is more likely than not it will utilize the net operating losses carried forward in future years. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date the financial statements and the reported amount of revenues and expenses during the reporting period. Actual results could differ from those estimates. Revenue Recognition The Company will recognize revenue when products are fully delivered or services have been provided and collection is reasonably assured. Stock-Based Compensation Stock-based compensation is accounted for at fair value in accordance with ASC Topic 718. To date, the Company has not adopted a stock option plan and has not granted any stock options. Basic Income (Loss) Per Share Basic income (loss) per share is calculated by dividing the Companys net loss applicable to common shareholders by the weighted average number of common shares during the period. Diluted earnings per share is calculated by dividing the Companys net income available to common shareholders by the diluted weighted average number of shares outstanding during the year. The diluted weighted average number of shares outstanding is the basic weighted number of shares adjusted for any potentially dilutive debt or equity. There are no such common stock equivalents outstanding as of December 31, 2013. Comprehensive Income The Company has which established standards for reporting and display of comprehensive income, its components and accumulated balances. When applicable, the Company would disclose this information on its Statement of Stockholders Equity. Comprehensive income comprises equity except those resulting from investments by owners and distributions to owners. The Company has not had any significant transactions that are required to be reported in other comprehensive income. Recent Accounting Pronouncements Marika Inc. does not expect the adoption of recently issued accounting pronouncements to have a significant impact on the Companys results of operations, financial position or cash flow. NOTE 4 LOANS FROM DIRECTOR In May 2013, director loaned $274 to incorporate the Company and $200 to open bank account. In December 2013, director loaned $1,600 for business operations. The loan is unsecured, non-interest bearing and due on demand. The balance due to the director was $2,074 as of December 31, 2013. NOTE 5 COMMON STOCK The Company has 75,000,000, $0.001 par value shares of common stock authorized. On September 28, 2013, the Company issued 5,000,000 shares of common stock for cash proceeds of $5,000 at $0.001 per share. There were 5,000,000 shares of common stock issued and outstanding as of December 31, 2013. NOTE 6 COMMITMENTS AND CONTINGENCIES The Company neither owns nor leases any real or personal property. An officer has provided office services without charge. There is no obligation for the officer to continue this arrangement. Such costs are immaterial to the financial statements and accordingly are not reflected herein. The officers and directors are involved in other business activities and most likely will become involved in other business activities in the future. NOTE 7 INCOME TAXES As of June 30, 2013, the Company had net operating loss carry forwards of approximately $274 that may be available to reduce future years taxable income in varying amounts through 2031. Future tax benefits which may arise as a result of these losses have not been recognized in these financial statements, as their realization is determined not likely to occur and accordingly, the Company has recorded a valuation allowance for the deferred tax asset relating to these tax loss carry-forwards. The provision for Federal income tax consists of the following: June 30, 2013 Federal income tax benefit attributable to: Current Operations $ 93 Less: valuation allowance (93) Net provision for Federal income taxes $ 0 The cumulative tax effect at the expected rate of 34% of significant items comprising our net deferred tax amount is as follows: June 30, 2013 Deferred tax asset attributable to: Net operating loss carryover $ 93 Less: valuation allowance (93) Net deferred tax asset $ 0 Due to the change in ownership provisions of the Tax Reform Act of 1986, net operating loss carry forwards of approximately $274 for Federal income tax reporting purposes are subject to annual limitations. Should a change in ownership occur net operating loss carry forwards may be limited as to use in future years. NOTE 8 SUBSEQUENT EVENTS In accordance with SFAS 165 (ASC 855-10) management has reviewed events between December 31, 2013 and the date the financial statements were issued, May 2, 2014 and has determined that it does not have any material subsequent events to disclose in these financial statements.RY(]7/ZK7^DNYHR:!_P>;!G?TH`JKK?YYP4='K4-`3)-@9
ME2BB9*'OX[$[9MZ,6WH7VSQSLLY@$^P.S8`+?)+F%=][TVJ=\Q>):KTS1H48
M*O@OZU9E?*:4:%V>Z2@[U?&M!A?!\1=GW(;='(.%'3@XX?#UB=9,)[I]FY0Y
M.\)5YYO-87_(.#LWFPGI)M4MZ("*WGB#*^>#NT8*:<20%SU!1$EZ&1OZX,8Y
M1:'KT`4\:XW3JUK#0>SU_$]94-6\CE@Z>MV8XS[`EAD ST4
M`D60:CZS6PB1=S)49O@XEB3N8")T-P,;9XPTT6'@`E(P%4]))EBCBCW]6.2%
MA4!67]Z?/LFFBAKZ
MLR^[J.@#/$&M+%/(LG_T9*U(PE/^27%$R,.\U4;OX`-;Q@IVEDW*6G?3_7?6
MU[?Y=NZ>+K&Z.%EK0*KM/CW#K3MOOVYH5=TD7]6Q0[C:\GN7-TE%MSSU<K
M<4/<\G=UJ20UZY%?F][K%$J7O")RA`+B]4JIH#RZN1)GMUP+TE=CU2-_BS=7
M*8I93^<&(E3")\QF.X=/](&A\9XIN]X=7UZR&2]_H,RRXA?=G<[$UM"2:T_L
MAM=]3Y-RF^TK22><1SB<7'&++T:G@?PQMJGA:4E=BFXO1"P3YB/
6,I2?>)5F
M(ZE$A781SBULPWOE%G4!6D!?AK22;(D\?SSKPGA.U%['=,X-SNWX>SM,5=W+
M_:$O5$P=78;=_IR*=(I,MN#`4<)O]`,RB2=ESL17C0N1&!8V,\W9I6VU_-G`
M86KY`+<1(3`KA"A0BK4]TF300+L,"+M=QFLY\+F!;C:PS0RR9P(M1T@M#"5Q
MMP1-$JXIC!/[<:_T2WGO*T6FAOKC#GH6R_6
MYY3$'6@7G1=K9$G=NY-3P]J>Y@>VQ*HK"[:1?$-W14E[)%1OO]9EPJR>YDGY
M=%73?76<`M:2_W9.B1BWWW.;P_/.O!?MVV83D#J23DER*[0\(EA;D2--B5!U
M-25][S,UJM$7+`[++O26,??HC+R`A%D"`MZG%GG1W/)RBI:*]T[O1:HI[7_/
M:5;#Z\ZRUS01;
$+@5?AP="GQ_SQQ5Z=YCAY2I!U6<+BF;O#OE/
M'%65ZO05?521B\3%GL--,!=A^RV]V/$1@0<)2+.L%BM$A<:I<)A
M\2G'!]Q-QV[#;VG$LU7=H&E!=?L,&\FP*)4@`^X"I,00"
6 Months Ended
Notes
Organization and Nature of Business
Balance Sheets
Common Stock, Par Value
$ 0.001
$ 0.001
Common Stock, Shares Authorized
75,000,000
75,000,000
Common Stock, Shares Issued
5,000,000
5,000,000
6 Months Ended
Document and Entity Information:
Entity Registrant Name
Marika Inc.
Document Type
10-Q
Document Period End Date
Dec. 31,
2013
Amendment Flag
false
Entity Central Index Key
0001583648
Current Fiscal Year End Date
--06-30
Entity Common Stock, Shares Outstanding
5,000,000
Entity Public Float
$ 0
Entity Filer Category
Smaller Reporting Company
Entity Current Reporting Status
Yes
Entity Voluntary Filers
Yes
Entity Well-known Seasoned Issuer
No
Document Fiscal Year Focus
2014
Document Fiscal Period Focus
Q2
3 Months Ended
6 Months Ended
7 Months Ended
Revenues
Revenues
$ 0
$ 0
$ 0
Operating Expenses
Professional Fees
2,162
7,912
7,912
Bank fees
36
48
48
Total Operating Expenses
2,198
7,960
7,960
Net loss from operations
(2,198)
(7,960)
(7,960)
Income Tax Expense (Benefit)
Provision for Income Taxes (Benefit)
0
0
Net Income (Loss)
$ (2,198)
$ (7,960)
$ (7,960)
Earnings Per Share
Weighted Average Number of Shares Outstanding, Basic
5,000,000
5,000,000
5,000,000
Earnings Per Share, Basic and Diluted
$ 0
$ 0
3 Months Ended
6 Months Ended
7 Months Ended
Net Cash Provided by (Used in) Operating Activities
Net loss for the period
$ (2,198)
$ (7,960)
$ (7,960)
Increase (Decrease) in Operating Liabilities
Increase (Decrease) in Accrued Liabilities
1,250
1,250
1,250
Net Cash Provided by (Used in) Operating Activities
(948)
(6,710)
(6,710)
Net Cash Provided by (Used in) Investing Activities
Payments to Acquire Property, Plant, and Equipment
0
0
Net Cash Provided by (Used in) Financing Activities
Proceeds from Issuance of Common Stock
5,000
Proceeds from director loans
1,600
1,600
1,800
Net Cash Provided by (Used in) Financing Activities
1,600
1,600
6,800
Cash and Cash Equivalents, Period Increase (Decrease)
598
5,110
90
Cash and Cash Equivalents, at Carrying Value
688
5,200
Cash and Cash Equivalents, at Carrying Value
$ 90
$ 90
$ 90